IEA Chief: High Oil Prices Could Harm Producers In The Long Term

Oil prices higher than the current levels may not be good news for major oil producers in the medium and long term, as consumers will seek alternatives to refined oil products in energy and passenger cars, leading to a decline in oil consumption, Fatih Birol, Executive Director of the International Energy Agency (IEA), said in an interview with India’s ET Now. Answering a question about the 56-percent rally in Brent oil prices in 12 months, Birol said that the market is currently driven by fundamentals—very strong demand growth in 2017 and so far in 2018, plus a significant drop in Venezuela’s oil production. Some geopolitical developments on top of the tight market could further boost oil prices in the coming months, the IEA’s chief told ET Now. Most recently, the U.S. withdrawal from the Iran nuclear deal and the renewal of sanctions on Tehran drove oil prices higher. Commenting […]